Ategrity Specialty Insurance Co HoldingsASIC

Ategrity Specialty Insurance Co Holdings Earnings Per Share Disclosure

10-KFiled Mar 6, 20262 min read
Earnings Per Share
In connection with the Reverse Stock Split and Corporate Conversion as described in Note 2, the Company retroactively adjusted the presentation of earnings per share (“EPS”) as if the Reverse Stock Split and Conversion occurred at the beginning of the earliest period presented in accordance with ASC 260, Earnings per Share.
The following table presents the calculation of basic and diluted EPS for the years ended December 31, 2025 and 2024:
Year Ended December 31,
20252024
(in thousands, except for share and per share data)
Numerator:
Net income attributable to stockholders$74,002 $47,090 
Income allocable to participating securities890 360 
Net income available to stockholders$73,112 $46,730 
Denominator:
Weighted-average shares outstanding - basic, including participating securities45,378,789 36,928,283 
Weighted-average participating securities(721,398)(282,206)
Weighted-average shares outstanding - basic44,657,391 36,646,077 
Dilutive effect of share-based compensation1,576,431 1,706 
Weighted-average shares outstanding - diluted46,233,82236,647,783
Earnings per share - basic$1.64 $1.28 
Earnings per share - diluted$1.58 $1.28 
Basic net earnings per share is computed by dividing net income available to stockholders by the weighted-avera
ge number of common shares outstanding during the period. Diluted net earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.
Unvested share-based payment awards, including restricted stock units and stock options, do not have nonforfeitable rights to dividends or dividend equivalents and therefore are not considered participating securities under ASC 260. Accordingly, these awards are not included in the allocation of earnings under the two-class method. Stock options and similar awards are included in diluted earnings per share using the treasury stock method when the effect is dilutive, and awards subject to vesting or performance conditions are included only when the conditions have been satisfied as of the reporting date.
Prior to July 1, 2025, the Company applied the two-class method because outstanding warrants were considered participating securities, as they provided the holder with a nonforfeitable right to receive dividends on the same terms as common stockholders, regardless of whether the warrants were exercised. Effective July 1, 2025, pursuant to the Waiver described in Note 16, Stockholders’ Equity, the warrants are no longer considered participating securities during the Waiver Period (July 1, 2025 through December 31, 2027). Accordingly, beginning July 1, 2025, the Company no longer allocates earnings to the warrants under the two-class method and instead considers the warrants under the treasury stock method for diluted EPS, when dilutive.
As a result, EPS for the year ended December 31, 2025 reflects the combined effect of the two-class method applied through June 30, 2025 and the treasury-stock method applied thereafter.
Free Sentinel

Want the next Ategrity Specialty Insurance Co Holdings earnings per share disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment Ategrity Specialty Insurance Co Holdings's next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesFair ValuePP&ELeasesSegmentsCommitmentsStock CompensationNew StandardsNEO Compensation Adjustments